EDGM Edgemode, Inc.

BEARISH Impact: 7/10 8-K
Horizon weeks Filed Mar 4, 2026 Processed 3mo ago SEC 0001683168-26-001478
8-K context-dependent: Items 8.01
Final — all horizons settled through T+60d
EDGM ▼ -77.97% at T+60d
SHORT call ✓ call won +77.97% · α vs SPY +89.27% · entry $0.0118 → $0.002600
Currently $0.002400 · +79.66% from $0.0118 entry (call sign-flipped)
Entry anchored
Mar 4, 2026
via day open
T+1d
-10.17%
call +10.17% · α +8.86%
$0.0106
settled 3mo ago
T+5d
-21.19%
call +21.19% · α +18.95%
$0.009300
settled 3mo ago
T+20d
-38.98%
call +38.98% · α +35.19%
$0.007200
settled 2mo ago
T+60d
-77.97%
call +77.97% · α +89.27%
$0.002600
settled 12d ago

Price Chart

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Executive Summary

Edgemode, Inc. raised $130,000 in net proceeds through a $150,000 convertible promissory note issued to an accredited investor, CFI Capital LLC. The note carries a 6% interest rate, is convertible into common stock at a 40% discount to the lowest trading price over 15 days, and includes significant penalties for prepayment. The proceeds will be used for working capital.

Actionable Insight

Traders should monitor for potential share dilution as the note becomes convertible after 6 months. The aggressive conversion terms suggest financial distress, which could pressure the stock price. Watch for any early conversions, which would signal immediate dilution. Consider this financing as a negative signal about the company's financial health and future funding prospects.

Key Facts

  • Edgemode issued a $150,000 convertible note to CFI Capital LLC with a $15,000 original issue discount
  • Net proceeds to the company were $130,000 after $5,000 in legal fees
  • Note bears 6% interest, payable in shares of common stock
  • Convertible at 60% of the lowest trading price over 15 days, creating significant dilution risk
  • Prepayment penalties range from 105% to 140% of principal depending on timing
  • Proceeds will be used for working capital
  • The company reserved 116,822,430 shares for potential conversion of the note

Financial Impact

The company received $130,000 in net proceeds but created substantial future dilution risk. The conversion mechanism at 60% of the lowest trading price over 15 days could significantly dilute existing shareholders if the stock price declines. The note's structure with high prepayment penalties suggests expensive, last-resort financing.

cashdilutiondebtequity

Risk Factors

  • Significant shareholder dilution from conversion at a 40% discount
  • Potential for death spiral financing if the stock price declines
  • High cost of capital with original issue discount and prepayment penalties
  • Risk of accelerated conversion if the company triggers an event of default

Market Snapshot

Exchange
OTC

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001683168-26-001478
Document: edgemode_ex1002.htm0001683168-26-001478
Document: edgemode_8k.htm0001683168-26-001478
Document: 0001683168-26-001478-index-headers.html0001683168-26-001478
Document: 0001683168-26-001478-index.html0001683168-26-001478
Document: 0001683168-26-001478.txt0001683168-26-001478

US Market Status

Market Closed — Opens Thu (11h 1m)

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